APIC can be debited for either the APIC from previous retirements or the pro rata portion of APIC for the current issue; the second alternative applies to this question. One-ninth of the shares of common stock are retired, so one-ninth of APIC can be debited for $300,000. An additional...
Stockholders' equity is a company's total assets minus its total liabilities. It's one of the three main components of any...
stockholders'equity： 股东权益 The portion of the balance sheet that represents the capital received from investors in exchange for stock (paid-in capital), donated capital and retained earnings. Stockholders' equity represents the equity stake currently held on the books by a firm's eq...
Stockholder Equity Stock is the initial capital that a company starts with. Owners own a portion (and are therefore stockholders), which gives them fractional rights to company profits. When a company goes public, it splits stock into tiny fractions and sells them on the open market. The frac...
Current Portion of Long-term Debt This account or line description reports the principal portion of a long-term debt that will have to be paid within one year of the date of the balance sheet. (The portion of the debt that is not due within one year is reported as a noncurrent liabilit...
A business reports funds from stockholders under “contributed” or “paid-in” capital in the stockholders’ equity section of the balance sheet. Depending on the state of incorporation, it might report the amount in one account or might report a portion of the proceeds separately as “par val...
Retained earnings, also known as retained surplus, are the portion of a company's profits that it keeps to reinvest in the business or pay off debt, rather than paying them out as dividends to its investors. Retained earnings are one component of the corporation's net worth and increase th...
Using the numbers from the previous example, your $150,000 in liabilities makes up a small portion of the $600,000 in total liabilities and stockholders' equity, which suggests a relatively conservative amount of debt. References Financial Accounting; W. Steve Albrecht, et al. ...
Companies may return a portion of stockholders' equity back to stockholders when unable to adequately allocate equity capital in ways that produce desired profits. This reverse capital exchange between a company and its stockholders is known asshare buybacks. Shares bought back by companies becometrea...
of a business.6.The presentation of the owner's equity section is same for three types of business organinzation.7.Withdrawals by the owner of a single proprietorship reduce both the assets and the liabilities.8.Declaration of dividends reduces the retained earnings portion of the owners' ...